23 Dec Hand on the trigger
Positive economic reports helped stocks push higher this morning. Personal Income was lower than expected, but spending was in line with estimates. Consumer sentiment missed estimates but was the highest in 5 months, so it is being taken as a positive. mortgage bonds were down at the open, but have come back to even for now. That can be viewed as positive for interest rates as these price levels continue to hold past the tapering announcement. Volume will be light throughout the next 2 weeks, so any moves could just be exaggerated volatility. We will maintain a cautious floating bias. However, keep in mind that we are now at the top of a nasty downward trading trend. Each of the last times we touched the top of this channel we had a swift move lower. Therefore, sentiment can change quickly. Therefore, watch closely and be ready to lock if we get pushed lower once again.